Menlo company distributes a single product the companys

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Reference no: EM13376771

Menlo Company distributes a single product. The company's sales and expenses for last month follow:

Total Per Unit
Sales	$450,000	$30
Variable expenses	180,000	12
Contribution margin	270,000	18
Fixed expenses	216,000
Net Operating income	54,000

1) What is the month break-even point in units sold and in sales dollars?

2) Without resorting to computations, what is the total contribution margin at the break-even point?

3) How many units would have to be sold each month to earn a target profit of $90,000? Use the formula method. Verify your answer by preparing contribution format income statement at the target sales level.

Reference no: EM13376771

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